Clearway Energy Breaks Ground On 199 MW Spindle Energy Center In Colorado Using Tesla Batteries, Offering 398 MWh Of Dispatchable Grid Power

Clearway Energy Group has announced the closing of financing and the commencement of construction for the Spindle Energy Center, a 199-megawatt (MW) energy storage system located in Weld County, Colorado. The facility will use American-made Tesla batteries with a two-hour duration and is capable of storing up to 398 megawatt-hours (MWh) of dispatchable power, providing flexible and reliable energy to the grid.

John Woody, Chief Development Officer at Clearway, highlighted the project’s significance, noting that Spindle represents a major investment in Weld County’s energy future. He emphasized that the facility will deliver both reliable storage and economic benefits to the region, and expressed gratitude to partners for their collaboration, while reaffirming Clearway’s commitment to working closely with the local community, its customers, and financial stakeholders.

The Spindle Energy Center is under a long-term contract with the Public Service Company of Colorado, a subsidiary of Xcel Energy, ensuring that the energy produced will be dispatched as reliable power according to the needs of the grid. This arrangement underscores the growing role of large-scale energy storage in supporting grid stability and integrating renewable energy sources.

Financing for the $261 million project was arranged through a consortium of banks, including U.S. Bank National Association, BBVA, KeyBanc Capital Markets, National Australia Bank Limited, and Norddeutsche Landesbank Girozentrale. Construction is being carried out in partnership with Blattner Energy, which is expected to create nearly 80 local jobs during the building phase.

The project is also designed to provide lasting benefits to the local community. Spindle Energy Center is projected to generate more than $12 million in tax revenue over the lifetime of the facility, supporting hospitals, schools, emergency services, and other public programs in Weld County. To date, $125,000 has been allocated in community donations, supporting youth programs, local events, and the Weld Food Bank.

Once operational, the facility is expected to contribute $20,000 annually to local organizations, further reinforcing its commitment to the community. By combining advanced battery technology, long-term grid contracts, and strong community engagement, the Spindle Energy Center demonstrates Clearway’s approach to delivering large-scale energy storage projects that provide economic, environmental, and social benefits.